All Forum Posts by: Sam Huang

@Chris Howell - love your insight here. I did not pursue the deal given the location.
What sort of investment would you do in today's market in Tulsa?

It would also be useful to see what market conditions you are seeing right now (rent, vacancies, ...)

Hey BiggerPockets fam,

I used to live in Tulsa, but now I am OOS and would like to continue to invest there as it meets our goals.

Would you invest in a new construction duplex like this? https://docs.google.com/document/d/1lWz4pirkXlbpASNKBMV1RIpp...

Cost: $360K

Rents: ~2800/month (both units combined)

Area: West Tulsa (not the best area in town but pockets of West Tulsa are good and in close proximity to downtown). I would consider this a B- area.

Cashflow with current interest rates and 25%. down would be ~200/month. If our goal is long-term buy-and-hold and currently in accumulation phase, would you invest in this area and duplex?

I am an OOS investor in Tulsa and have a few units in suburbs of Tulsa (Broken Arrow, Sand Springs)

Trying to grow my portfolio and looking at duplexes, for better cash flow. I have heard mixed reviews about West Tulsa, would you invest in the area where this duplex sold recently? https://www.zillow.com/homedetails/3808-W-55th-St-Tulsa-OK-7...

Numbers:

3/2 duplex, no garage. 1300 sq. ft. each: $365K

Rent: $2800 total I suspect for the area.

With current interest rates, I will have a minor cashflow : 100-200$/month with 25% down.

How is the deal and area? Appreciate any feedback.

Happy Thanksgiving to the BiggerPockets community!

I am looking for feedback on what to do next with my real-estate portfolio.

Current situation: 

- We have 5 rentals properties spread across Tulsa & Florida (9 doors)

- Equity is probably around ~600K and cash-flows ~2K/month.

- We have busy but well paying jobs and don't like to spend time in building sweat equity (BRRR, flip), so will take a slightly low maintenance approach and buy relatively newer properties in B class neighborhoods and use property management for day-to-day operations.

Goal:

- To get to $10K/month net profits with real-estate (today's currency) in 15 years when we plan to retire. We like being aggressive in stock market investing but more conservative in real-estate given that we plan to use that for cash-flow eventually.

The options are:
We expect to have $200K/year in taxable savings the next 5 years (barring a job loss)

- Pump all savings to the stock market & keep the current rental properties as-is and payoff the properties over the next 15 years using cash-flow for snowballing. If I assume a 2% rate of rental increase for 15 years and 50% rule for expense, we will have $7.5K/month net-profits in 15 years.

- Split 50:50 between real-estate & stock market. In the next 5 years, we can buy one property per year with 25% down (~100K), and perform the same operation of using cash-flow for paying off properties next 15 years and we will have $15K/month net-profit which hits our goal adjusted for inflation (assumed at 3%). We also don't like to be too heavily indexed in real-estate in our total net-worth.

What would you do? Feedback appreciated.

Family goals: 

We are a family of 4 (2 kids), living in CA. Our goal as a family is to move outside the US in the next 3-4 years and live half way around the world for the foreseeable future (5+ years). 

Financial goals:

Our current jobs provide for high-income but not a lot of time for active real-estate investing, so our strategy is long-term buy-and-hold with less headache properties. In today's dollar terms if we bring in $10K/month with real-estate cash-flow that would make us financially independent.

Current real-estate portfolio: 

- Own 4 properties, mostly duplexes in the state of Oklahoma.

 - Cashflow is ~2K/month and leverage is ~60% (equity being 40% of current value)

Accumulation goals:

In the next 2 years, our plan is to buy lots and have duplexes built by a builder we have existing relationship with that takes care of the whole process without too much of our involvement. 

- Buy 6 additional duplexes. Expect total cost to be ~350K per duplex and bring in 3-3.2K/month rent. We plan to leave 25-40% of equity in the deal. We are conservative investors since we will be out of the country eventually.

- These total 10 duplexes should bring in 30K gross rent per month and cash-flow about ~3-4K/month.

We don't plan to use any of the cash-flow for personal expenses and after keeping sufficient reserves, we will funnel the cash-flow to pay-off existing properties. By our estimate, it should take us about 10-12 years to payoff all the properties with this snowball approach. At the end of it, assuming a modest 2% appreciation in property-value and rents that should give us ~$38K/month in gross rents and $4.5M in paid-off homes. Using the 50% rule (taxes, insurance, Capex, maintenance, vacancies, property-management), that should give us ~19K/month in pre-tax profits that achieves our 10k/month financial goal after-tax and adjusting for inflation.

Our assumption is that building new-construction would reduce capex & maintenance the first few years. The duplexes will be in B-class mix of blue-collar and white-collar neighborhoods with good rental demand and during times of a recession they should hopefully hold their rental price & demand.

How does the plan sound? Feedback appreciated.

This models an investor I heard about on BiggerPockets called Chad Carson in the Small & Mighty Real-Estate investor.

We are real-estate investors from CA & trying to pick an OOS market with Tulsa (stable economy and future outlook, modest appreciation & reasonable cash-flow).

We heard from family/friends about new construction duplexes around the Tulsa metro targeting investors. We are long-term investors (10+ years) and plan to use the properties for cash-flow when we retire in 15+ years. We hope to have paid-off 5-10 small multi-family properties in the Tulsa area by retirement age that should supplement our 401K's and Social-Security income.

Area: West Tulsa (blue-collar neighborhood)

Property Price: $360K

Average rents: $3000-$3200 (duplex)

Has anyone heard/worked with Marc Ruiz in Tulsa? Are these numbers reasonable for Tulsa (0.9 for rent-to-price ratio and B class neighborhoods focussing on affordable housing) and the duplex should cash-flow about ~$200/door with 25-30% down.

For other investors in Tulsa, not targeting value-add (BRRRR, ...) - would you consider this a reasonable deal (don't need a home-run)?